Vaisala Corporation Stock Exchange Release 8.5.2008 09:00
a.m.
Vaisala Group's Interim Report, January-March 2008 (3 months)
- Orders received at a good level: 63.9 (53.5) million EUR,
growth 19.4%. In comparable currencies, the growth would have been
26.1%.
- Net sales EUR 46.4 (50.3) million, down 7.6%. In comparable
currencies, the change would have been -0.6%.
- Operating profit EUR 3.1 (6.5) million.
- Earnings per share EUR 0.11 (0.27).
- Revenue of the first weather radar orders recognized.
Q1 2008 Q1 2007 Change 2007
(EUR million) (EUR million) (%)
Net sales, group 46.4 50.3 -7.6 224.1
Measurement Systems 16.6 22.0 -24.2 95.4
Instrumens 18.8 17.9 4.6 76.6
Solutions 6.9 5.9 16.2 34.6
Services 6.8 7.2 -5.4 33.0
Eliminations and other -2.7 -2.8 -15.5
Operating profit, group 3.1 6.5 -52.2 35.3
Measurement Systems -1.4 2.2 -162.0 12.3
Instrumens 4.9 5.0 -1.9 20.5
Solutions -1.7 -1.0 68.3 -0.6
Services 0.5 1.0 -52.1 5.7
Eliminations and other 0.7 -0.8 -2.6
Profit before taxes 2.9 7.0 -58.0 37.0
Net profit for the review
period 1.9 5.0 -61.6 25.8
Orders booked 63.9 53.5 +19.4 228.5
Order book 96.0 79.1 +21.4 82.3
Earnings per share 0.11 0.27 -61.6 1.42
Return on equity (%) 4.6 12.2 14.9
Comments on the first quarter
Big seasonal variation is typical of Vaisala's business, which is
also reflected in the results from the first quarter. The number of
orders received developed favorably. However, net sales and operating
profit were lower than a year ago due to weakened exchange rates and
some postponed deliveries.
Outlook for the remainder of 2008
Instability in the world economy and changes in the currency exchange
rates are expected to continue to affect the result. Due to the
structure of Vaisala's customer base, the Company's market situation
is expected to remain unchanged in 2008. We continue to expect our
net sales and operating profit to remain at the same level or be
slightly higher than in the preceding year. The market situation is
expected to remain favorable especially in Asia-Pacific.
The development projects aiming at long-term growth are continuing.
President and CEO Kjell Forsén on the first quarter:
"Vaisala's net sales in the first quarter are moderate, which is
typical of our business. Growth was achieved in the Vaisala
Instruments business area, whereas Vaisala Measurement Systems fell
below expectations due to postponed deliveries. However, the order
book is strong also in this business area.
The US dollar has weakened by some 15 percent compared to the
corresponding period last year, which shows in our net sales and
result. Without the effect of exchange rates, the decrease in net
sales would have been 0.6 percent, instead of the 7.6 percent in
current rates.
The strategy and information technology development projects launched
last year continued during the first quarter, which is also reflected
in the result to some extent. The development is extremely
determined, with the aim of creating a solid foundation for future
growth."
Market situation, net sales and order book
Vaisala's market situation remains unchanged. The number of orders
received has developed positively during the first quarter. Vaisala's
market-position also remains strong.
The value of orders received was EUR 63.9 (53.5) million, which is
19.4 percent more than in the previous year. In comparable
currencies, the value of orders received would have grown by 26.1
percent. The number of orders received for the past 12 months is EUR
238.9 million. The order book stood at EUR 96.0 million (79.1) at the
end of the review period.
Net sales decreased by 7.6 percent year on year, to EUR 46.4 (50.3)
million. If the most significant currencies with respect to Vaisala
had remained at the previous year's level, Vaisala's consolidated net
sales would have decreased by 0.6 percent.
Net sales decreased in all geographic areas compared to the
corresponding period in 2007. Net sales per region were as follows:
Europe EUR 16.7 (18.1) million, North America EUR 14.7 (15.4)
million, Asia-Pacific EUR 13.6 (14.0) million, and Africa and South
and Central America EUR 1.5 (2.7) million. Exchange rates affected
especially the North American net sales. In comparable currencies,
the North American net sales would have grown by 9.4 percent.
Operations outside Finland accounted for 96 percent of net sales, as
before.
Performance and balance sheet
Operating profit for the review period was 6.6 percent of the net
sales, EUR 3.1 (6.5) million. Profit before taxes was 6.3 percent of
the net sales, EUR 2.9 (7.0) million. Net profit for the review
period was EUR 1.9 (5.0) million.
Vaisala Group's solvency ratio and liquidity remained strong. On
March 31, 2008, the balance sheet total was EUR 220.0 (216.9)
million. The Group's solvency ratio at the end of the review period
was 78 percent (77 %).
Vaisala's consolidated liquid assets totaled EUR 100.2 (93.9)
million.
Research and development
Investment in research and development in the review period totaled
EUR 6.3 (5.6) million, representing 13.6 percent of the Group's net
sales.
Capital expenditure
Gross capital expenditure totaled EUR 2.1 (1.4) million. The
construction of a new enterprise resource planning (ERP) system for
the entire organization continues. Implementation will proceed in
phases, and will commence this year.
Changes in financial reporting
From the first Interim Report for 2008, Vaisala Group's business will
be reported in four segments, which are Vaisala Instruments, Vaisala
Measurement Systems, Vaisala Solutions and Vaisala Services.
All figures for 2007 have been changed to correspond to the new
reporting model, and are therefore comparable. The comparative
figures for 2007 have been published in a stock exchange release on
30.4.2008.
Vaisala Measurement Systems
Vaisala Measurement Systems consists of sounding, surface weather
system, thunderstorm system, wind profiler, and weather radar
business segments. Vaisala Measurement Systems' offering was
complemented by single products and systems from Vaisala Solutions.
Correspondingly, the lightning detection services were moved to the
Vaisala Services business area.
Vaisala Measurement Systems' net sales to customers outside the Group
decreased by 24.1 percent year on year, to EUR 16.0 (21.0) million.
In comparable currencies, the net sales would have been down by 18.1
percent. Operating profit was EUR -1.4 (2.2) million. The lower than
expected net sales in the review period are due to a temporary
disruption in production, which delayed deliveries. This is not
expected to have an impact on the total net sales of the business
area in 2008.
Vaisala signed a EUR 6 million contract for the delivery of weather
station components and a EUR 8.3 million contract for the delivery of
upper-air observation products. Deliveries are agreed to be made in
2008.
The value of orders received was EUR 33.5 million and the order book
stood at EUR 47.3 million at the end of the review period.
Vaisala Instruments
Vaisala Instruments consists of humidity, barometric pressure, carbon
dioxide, dewpoint, oxygen, wind and optical measurement business
segments. The instruments business has developed well despite of the
weakened US dollar. The division's net sales to customers outside the
Group increased by 4.8 percent year on year to EUR 16.9 (16.1)
million. In comparable currencies, the increase in net sales would
have been 11.4 percent. Operating profit of the review period was EUR
4.9 (5.0) million.
The sales of humidity and wind measurement instruments developed
particularly well. Overall, sales to the biggest customers developed
positively.
The value of orders received from external customers was EUR 17.3
million and the order book stood at EUR 8.3 million at the end of the
review period.
Vaisala Solutions
The focus of Vaisala's solutions offering is in applications within
aviation, traffic, meteorology and hydrology. Therefore single
products and systems were moved to the Vaisala Measurement Systems
business area. Additionally, the road weather services were moved to
the Vaisala Services business area.
Vaisala Solutions' net sales to customers outside the Group increased
by 14.5 percent year on year to EUR 6.8 (5.9) million. In comparable
currencies, the net sales would have been up by 22.0 percent.
Operating profit for the review period was EUR -1.7 (-1.0) million.
Markets for aviation weather solutions have developed particularly
favorably.
The total value of orders received was EUR 8.9 million and the order
book stood at EUR 27.6 million at the end of the review period.
Vaisala Services
Vaisala's service offering has been centralized under the Vaisala
Services business area, which became operative at the beginning of
2008. Vaisala Services consists of two business segments, Product
Services and Observation Services.
Net sales to customers outside the Group decreased by 5.7 percent
year on year to EUR 6.8 (7.2) million. In comparable currencies, the
net sales would have been up by 5.1 percent. Operating profit for the
review period was EUR 0.5 (1.0) million.
The total value of orders received was EUR 4.2 million and the order
book stood at EUR 12.8 million at the end of the review period.
Personnel
The average number of employees in the Vaisala Group during
January-March was 1,121 (1,081). Some 39 (41) percent of the
personnel were based outside Finland.
Vaisala has two incentive plans; one based on the development of
sales and profitability and covering all employees, and another three
year plan based on the development of profitability and covering key
employees.
Near-term risks and uncertainties
No significant changes occurred in the risks and uncertainties
relating to Vaisala's business during the review period.
The most significant near-term risks and uncertainties relate to
changes in the global economy. Changes in purchasing activities,
currency exchange rates (with particular respect to the U.S. dollar),
supply chain management and production activities are the most
significant of these. Significant changes in subcontractor relations,
activities or operating environment may have a negative impact on
Vaisala's business. Vaisala monitors these risks and prepares for
them in accordance with the Company's risk management policy.
The Company is currently carrying out some significant improvements
in its research and development and sales organizations. These
changes lay the foundation for the successful execution of Vaisala's
new strategy. A new Group-wide enterprise resource planning system is
also under development. These efforts may constitute a short-term
risk regarding Vaisala's net sales and result.
Vaisala's share
The Company's Board of Directors had no valid authorizations for
increasing the share capital or issuing convertible bonds or bonds
with warrants at the end of the review period.
The closing price of Vaisala's A share in the OMX Nordic Exchange
Helsinki was EUR 28.55 at the end of the review period. The highest
quotation during the review period was EUR 36.49 and the lowest EUR
26.06. A total of 624,253 Vaisala shares were traded in the stock
exchange during the review period.
Vaisala has 18,218,364 shares, of which 3,407,385 are K shares and
14,810,979 are A shares. The shares have a counter book value of EUR
0.42. The K shares and A shares are differentiated by the fact that
each K shares entitles its owner to 20 votes at a General Meeting of
Shareholders while each A share entitles its owner to 1 vote. The A
shares represent 81.3 percent of the total number of shares and 17.9
percent of the total votes. The K shares represent 18.7 percent of
the total number of shares and 82.1 percent of the total votes.
The market value of Vaisala's A shares on 31.3.2008 was EUR 422.6
million, excluding the Company's own shares. The total market value
of all shares, when the K series shares which are not traded on the
stock market are valued at the rate of the A series shares' closing
price on the final day of the review period, was EUR 519.9 million at
the end of the review period, excluding the Company's own shares.
Vaisala's main shareholders are listed on the Company's website and
in the Notes to the Financial Statements.
Treasury shares and parent company shares
At the end of the review period, the Company held a total of 9,150
Vaisala A shares, which represented 0.05 percent of the share capital
and 0.01 percent of the votes. The consideration paid for these
shares was EUR 251,898.31.
Decisions made by the Annual General Meeting
Vaisala Oyj's Annual General Meeting was held on 27.3.2008 at the
Company's headquarters in Vantaa. The Annual General Meeting
confirmed the annual accounts for 2007 and granted the Members of the
Board of Directors and the Company's President and CEO discharge from
liability for the accounts between 1.1.-31.12.2007.
The Annual General Meeting decided that a dividend of EUR 0.85 per
share, corresponding to the total of EUR 15,477,831.90 was to be
distributed for the financial year 2007. Dividend was not paid to the
A-shares that are held by Vaisala Oyj. Dividend was paid on April 8,
2008.
The Annual General Meeting decided that the Board of Directors
continues to comprise of six members. Raimo Voipio and Mikko
Niinivaara, who were to retire by rotation were re-elected for three
years. Other members in the Board of Directors are Yrjö Neuvo, Maija
Torkko, Mikko Voipio and Stig Gustavson.
The Annual General Meeting decided on the annual remuneration of the
Board of Directors to be as follows: chairman 35,000 euros, and a
member 25,000 euros.
Auditors
PricewaterhouseCoopers Oy and Mr. Hannu Pellinen APA were chosen as
the Company's Authorized Public Accountants.
Board of Directors' Organizing Meeting
Raimo Voipio will continue as the Chairman of the Board of Directors,
and Yrjö Neuvo as Vice Chairman. Maija Torkko, Mikko Niinivaara,
Mikko Voipio and Stig Gustavson are members of the Board.
Vantaa, Finland, May 8, 2008
Vaisala Corporation
Board of Directors
Key figures
Financial indicators 1-3 1-3 1-12
2008 2007 2007
Return on equity (ROE) 4.6% 12.2% 14.9%
Number of shares at March. 31
(1000 pcs) 18209 18209 18209
Number of chares at March 31
(1000 pcs), weighted average 18209 18209 18209
Adjusted number of shares (1000 pcs) 18209 18209 18209
Earnings/share (EUR) 0.11 0.27 1.42
Earnings/share (EUR),fully diluted 0.11 0.27 1.42
Net cash flow from operating
activities/share (EUR) 0.24 0.46 1.98
Equity/share (EUR) 8.81 8.73 9.68
Solvency ratio 78% 77% 83%
Gross capital expenditure (EUR Million) 2.1 1.4 7.3
Depreciation (EUR Million) 2.0 2.0 8.2
Average personnel 1121 1081 1113
Order book (EUR Million) 96.0 79.1 82.3
Liabilities from derivative contracts
(EUR Million) 13.6 12.0 14.3
CONSOLIDATED INCOME STATEMENT
(IFRS, EUR million)
1-3 1-3 Change 1-12
2008 2007 % 2007
Net sales 46.4 50.3 -7.6 224.1
Cost of production and
procurement -21.4 -21.9 -1.9 -99.6
Gross profit 25.0 28.4 -12.0 124.5
Other operating income 0.0 0.0 0.0
Cost of sales and
marketing -11.6 -11.4 1.3 -46.2
Development costs -6.3 -5.6 12.8 -23.5
Other administrative
costs -4.0 -4.9 -18.2 -19.5
Operating profit 3.1 6.5 -52.2 35.3
Financial income and
expenses -0.2 0.5 -128.9 1.6
Share of results of
associated companies 0.0 0.0 0.0
Profit before tax 2.9 7.0 -58.0 37.0
Income taxes -1.0 -2.0 -49.0 -11.2
Profit after tax 1.9 5.0 -61.6 25.8
Attributable to Equity
holders of the parent 1.9 5.0 -61.6 25.8
Taxes for the review period have been calculated under taxes.
Earnings per share for profit attributable to the
equity holders of the parent:
1-3 1-3 Change 1-12
2008 2007 % 2007
Basic earnings per share (EUR) 0.11 0.27 -61.6 1.42
Diluted earnings per share (EUR) 0.11 0.27 -61.6 1.42
CONSOLIDATED BALANCE SHEET
(EUR million) 31.3.2008 31.3.2007 Change 31.12.2007
%
ASSETS
Non-current assets
Intangible assets 16.2 20.4 -20.7 17.8
Tangible assets 33.4 33.1 0.9 33.1
Investments in associates 0.3 0.5 -35.4 0.5
Other financial assets 0.0 0.0 35.0 0.0
Long-term receivables 0.2 0.1 239.3 0.1
Deferred tax assets 4.5 5.7 -21.4 4.7
Current assets
Inventories 18.3 18.3 0.0 16.1
Trade and other receivables 44.6 44.4 0.6 53.4
Accrued income tax receivables 2.3 0.6 316.5 0.5
Financial assets recognised at
fair value through profit and
loss 42.7 41.6 2.7 42.6
Cash and cash equivalents 57.5 52.3 9.9 56.6
TOTAL ASSETS 220.0 216.9 1.4 225.6
SHAREHOLDERS' EQUITY AND
LIABILITIES
Equity attributable to equity
holders of the parent
Share capital 7.7 7.7 0.0 7.7
Share premium reserve 16.6 16.6 0.0 16.6
Reserve fund 0.1 0.1 31.6 0.1
Translation differences -7.7 -1.9 314.4 -5.4
Profit from previous years 142.1 131.8 7.8 131.8
Own shares -0.3 -0.3 0.0 -0.3
Profit for the financial year 1.9 5.0 -61.6 25.8
Total equity 160.4 159.0 0.9 176.3
Liabilities
Long-term liabilities
Retirement benefit obligations 0.3 0.3 -7.2 0.3
Interest-bearing liabilities 0.1 0.2 -43.6 0.2
Provisions 0.2 0.0 386.8 0.2
Deferred tax liabilities 0.3 0.3 3.0 0.4
Current liabilities
Current portion of long-term
borrowings 0.1 0.3 -80.4 0.1
Current interest-bearing
liabilities 0.7 0.3 145.1 0.7
Advances received 13.7 10.9 25.4 12.0
Accrued income tax payables 1.8 3.0 -40.6 2.5
Trade and other payables 42.3 42.3 0.0 32.9
TOTAL SHAREHOLDERS' EQUITY AND
LIABILITIES 220.0 216.9 1.5 225.6
CONSOLIDATED STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY
March 31.2008 (EUR million)
Transl- Retai
Share Share Reser Own ation ned Total
capi- Share premium ve Shar differ- earn- equi-
tal issue reserve Fund es ences ings ty
Balance at
December 31,
2007 7.7 0.0 16.6 0.1 -0.3 -5.4 157.6 176.3
Translation
differences 0.0 -2.3 -2.3
Net profit for
the year 1.9 1.9
Dividend paid -15.5 -15.5
Shareholders'
equity on
March 31, 2008 7.7 0.0 16.6 0.1 -0.3 -7.7 144.0 160.4
Transl- Retai
Share Share Reser Own ation ned Total
capi- Share premium ve Shar differ- earn- equi-
tal issue reserve Fund es ences ings ty
Balance at
December 31,
2006 7.7 0.0 16.6 0.1 -0.3 -1.6 147.3 169.8
Translation
differences -0.3 -0.3
Net profit for
the year 5.0 5.0
Dividend paid -15.5 -15.5
Shareholders'
equity on
March 31,2007 7.7 0.0 16.6 0.1 -0.3 -1.9 136.8 159.0
CONSOLIDATED CASH FLOW STATEMENT (EUR million)
1-3 1-3 Change % 1-12
2008 2007 2007
Cash flows from operating activities
Cash receipts from customers 56.4 61.9 -9.0 228.2
Other income from business operations 0.0 0.0 740.0 0.0
Cash paid to suppliers and employees -48.7 -51.6 -5.7 -184.0
Interest received 0.6 0.7 -11.4 3.4
Interest paid -0.2 -0.1 166.7 -0.4
Other financial items, net -0.1 0.5 -125.8 -0.4
Dividend received from business
operations 0.0 0.0 0.0
Direct tax paid -3.6 -3.1 17.4 -10.8
Cash flow from business operations (A) 4.4 8.4 -47.2 36.0
Cash flow from investing activities
Investments in tangible and intangible
assets -2.5 -1.5 60.8 -7.4
Proceeds from sale of fixed assets 0.2 0.0 0.0
Repayments on loan receivables 0.0 0.0 -139.1 0.0
Other investments 0.0 0.1 -158.2 0.0
Cash flow from investing activities (B) -2.3 -1.5 56.8 -7.4
Cash flow from financing activities
Repayment of long-term loans 0.0 0.0 -0.2
Dividend paid and other distribution of
profit 0.0 0.0 -15.5
Cash flow from financing activities (C) 0.0 0.0 -15.7
Change in liquid funds (A+B+C) increase
(+) / decrease (-) 2.1 6.9 -69.2 12.9
Liquid funds at beginning of period 99.2 87.3 13.6 87.3
Foreign exchange effect on cash -1.2 -0.4 213.3 -1.0
Net increase in cash and cash
equivalents 2.1 6.9 -69.2 12.9
Liquid funds at end of period 100.2 93.9 6.7 99.2
Segment Report
Business segments
Other
operat- Eliminat
1-3/2008 VMS * VIN * VSO * VSE * ions -ions Group
MEUR
Net sales to
external customers 16.0 16.9 6.8 6.8 0.0 0.0 46.4
Intragroup sales 0.7 1.9 0.1 0.0 0.0 -2.7 0.0
Net sales 16.6 18.8 6.9 6.8 0.0 -2.7 46.4
Operating profit -1.4 4.9 -1.7 0.5 0.7 0.0 3.1
Depreciation 0.3 0.1 0.0 0.3 1.3 0.0 2.0
* VMS = Vaisala Measurement Systems
* VIN = Vaisala Instruments
* VSO = Vaisala Solutions
* VSE = Vaisala Services
Segment Report
Business segments
Other
operat- Eliminat-
1-3/2007 VMS * VIN * VSO * VSE * ions ions Group
MEUR
Net sales to
external
customers 21.0 16.1 5.9 7.2 0.0 0.0 50.3
Intragroup sales 0.9 1.8 0.0 0.0 0.0 -2.8 0.0
Net sales 22.0 17.9 5.9 7.2 0.0 -2.8 50.3
Operating profit 2.2 5.0 -1.0 1.0 -0.8 0.0 6.5
Depreciation 0.5 0.4 0.1 0.2 0.8 0.0 2.0
* VMS = Vaisala Measurement Systems
* VIN = Vaisala Instruments
* VSO = Vaisala Solutions
* VSE = Vaisala Services
Segment Report
Business segments
Other
operat- Eliminat-
1-12/2007 VMS * VIN * VSO * VSE * ions ions Group
MEUR
Net sales to external
customers 90.2 66.2 34.6 33.0 0.0 0.0 224.1
Intragroup sales 5.2 10.4 0.0 0.0 0.0 -15.5 0.0
Net sales 95.4 76.6 34.6 33.0 0.0 -15.5 224.1
Operating profit 12.3 20.5 -0.6 5.7 -2.6 0.0 35.3
Depreciation 2.1 1.6 0.2 1.0 3.2 0.0 8.2
* VMS = Vaisala Measurement Systems
* VIN = Vaisala Instruments
* VSO = Vaisala Solutions
* VSE = Vaisala Services
Calculation of financial indicators
Shareholders' equity plus minority
interest
Solvency
ratio, (%) = --------------------------------------- x 100
Balance sheet total less advance payments
Profit before taxes less taxes
+/- minority interest
Earnings /
share = ---------------------------------------
Average number of shares, adjusted
Cash flow from business operations
Cash flow from
business = ---------------------------------------
operations /
share Number or shares at balance sheet date
Shareholders' equity
Equity / share = ---------------------------------------
Number of shares at balance sheet date,
adjusted
Dividend
Dividend /
share = ----------------------------------------
Number of shares at balance sheet date,
adjusted
Profit before taxes less taxes
Return on
equity, ROE
(%) = ---------------------------------------- x 100
Shareholders' equity plus minority interest
(average)
Further information:
Jouni Lintunen
CFO, tel. +358 (0)9 8949 2215, mobile +358 (0)400 579 0181
www.vaisala.com
Vaisala Corporation
DISTRIBUTION:
OMX Nordic Exchange Helsinki
Finnish News Agency
Other key media
Vaisala
Vaisala is a global leader in environmental and industrial
measurement, providing services, products and solutions for
meteorology, environmental sciences, aviation, traffic and industry.
Built on science-based innovation, advanced technology and over 70
years of experience, Vaisala is committed to providing a better
quality of life through environmental measurement. Headquartered in
Finland, Vaisala employs over 1100 professionals and is listed on the
Nordic Exchange, Helsinki. www.vaisala.com
